Question

The primary goal of financial management is to: A. Maximize current sales. B. Maximize the current value per share of the existing stock. C. Avoid financial distress. D. Minimize operational costs. E. Maintain steady earnings growth.

Answer 1

Answer:

B. Maximize the value of the existing stock.

Explanation:

Financial management involves the

judicious utilization of financial resources of the organization, in acheiving the goals and objectives of the organization. It involves analysing the investment, cash and others in the organization.It helps in management of expenses, cash as well as profitability of the organization and to maximize the returns of share holders. It should be noted that the primary goal of financial management is to Maximize the value of the existing stock.